Oil and gas contracts activity increased in 2021 due to improved crude prices

Source: press release, 22 March 2022

Contracts by scope and count in the oil and gas industry, 2021 (source: GlobalData Oil & Gas Intelligence Center)
Contracts by scope and count in the oil and gas industry, 2021 (source: GlobalData Oil & Gas Intelligence Center)

Annual oil and gas contracts activity reported an increase of 9% in the number of contracts and a substantial increase of 51% in disclosed contract value in 2021, says GlobalData, a data and analytics company.

Pritam Kad, Oil & Gas Analyst at GlobalData, comments, “Improved crude oil prices and COVID-19 subsiding provided a boost to contracts activity, with notable contracts such as Chiyoda Corp and Technip Energies’ joint ventures USD 12.242 billion EPC for over 32 mmtpa Qatar Petroleum’s North Field East Project (NFE) LNG project and Saudi Aramco’s 16 contracts, with a combined worth of USD 10 billion for the subsurface and EPC works for the development of the Jafurah shale gas field in Saudi Arabia.”

According to GlobalData’s latest report, Annual Global Oil & Gas Industry Contracts Review – 2021, the number of contracts increased from 5,750 in 2020 to 6,263 in 2021 and the disclosed contract value also showed a substantial increase from USD 115.42 billion in 2020 to USD 174.21 billion in 2021.

In terms of single scopes, operation and maintenance (O&M) represented 44% of the total contracts in 2021, followed by contracts with procurement scope with 20%, and multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, accounted for around 17%.

Other notable contracts include Yinson Holdings’ subsidiaries two contracts with Petrobras for the charter, and operation and maintenance services for the Integrado Parque das Baleias (IPB) floating, production, storage, and offloading (FPSO) vessel operating in the North Campos Basin, offshore Brazil, BW ‘s 15-year contract worth USD 4.6 billion from Santos for EPCI, lease and operation of Barossa FPSO offshore Darwin in Australia, and ADNOC Drilling’s 5-year drilling services agreement worth USD 3.8 billion with ADNOC Onshore for the provision of drilling, workover, and other well services in United Arab Emirates.